global hr-intercultural management
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Beginning of Global HRM
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The dramatic and discontinuous changes taking place in the global environment have contributed to the evolution of traditional multinational corporations (MNCs) into Global Organizations.
- Gimeno & Woo 1996, Wolf 1997, Galunic & Rodan 1998, Westney 1999.
What is Global Human Resource?
Global Human Resource is a process concerned broadly with
recruiting people, training them and putting them to the most
productive usage. It is also concerned with maintaining of
congenial international industrial relations. It is the essential
prerequisite for the success of the international firm owning to its
complexities.
Global human resource does the planning, selection, training,
employment, and evaluation of employees for global operations.
Much of the force of globalisation comes through mergers and
acquisitions.
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Globalizing The Hr - Function
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As companies Globalize, their HR departments need to
understand the challenges of working internationally and
serving a global organization like:
Supporting personnel to serve the needs of their global
organizations.
Acquiring competent personnel to work in a Global
Environment.
Train or explain alliance about and be a better global
business partner.
Administration and use supplement the capabilities for
existing professionals.
Frame and Practice HR polices that adopt multinational
Cultural, Political, Legal and Industrial framework.
Strategy - HRD
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HR professionals should have a thorough knowledge
of global business or it may outsource this function to
strongly established companies in new geographies
and the needs of the local workers in country with
competence.
Since a company's strategy will impact its employees,
HR should understand the Global Landscape and
everything from the recruitment and hiring
techniques used in other countries, to the
establishment of contracts, and compensation and
benefits packages.
Staffing the Global Organization
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Ethnocentric
Polycentric
Geocentric
International Staffing
Policy
Top Management Values
EthnocentricEthnocentricKey management positions filled by parent-Key management positions filled by parent-country nationalscountry nationals-Ex-P&G ,Philips, Matsushita.-Ex-P&G ,Philips, Matsushita.Dutch Mafia.Dutch Mafia.
PolycentricPolycentricHost-country nationals manage Host-country nationals manage subsidiariessubsidiariesParent company nationals hold key Parent company nationals hold key headquarter positions.headquarter positions.Best suited to multi-domestic businesses.Best suited to multi-domestic businesses.
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GeocentricGeocentricSeek best people, regardless of nationalitySeek best people, regardless of nationality
not always possiblenot always possibleBest suited to Global and trans-national Best suited to Global and trans-national businessesbusinessesEX-Colgate-PalmoliveEX-Colgate-Palmolive
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Factors that Influence the Global Work Environment
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Obstacles for Global HR
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Cultural Integration
Communication
Work organization
Political & Social Environment
Hr and the Internationalization of Business
The Global Challenges :
Coordinating market, product, and production plans on a worldwide basis.
Creating organization structures capable of balancing centralized home-office control with adequate local autonomy.
Extending HR policies and systems to service staffing needs abroad.
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What is Intercultural management?Intercultural management may be defined as
effective functioning of diverse groups of people.
Diversity can arise because of variation in ethnicity and nationality.
Most of the existing literature deals with getting managers from different countries to work together.
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Critical Cultural Variables
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Features of Intercultural management
Organizational culturesCommunication methods & systems.HumorOral, literal, and visual skills for benefit of
all playersLeadership Business or personal
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CultureCulture is a system that enables individuals and
groups to deal with each other and the outside world.
Culture means: shared values, beliefs, assumptions of
who and what we are.
They manifest themselves in our behavior and
language, the groups we belong to, the nature of our
society.
They are externalized in our artefacts, our art and
technology.
Our physical environment conditions our technology
and art, our behavior and language,… and our identity
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Culture as an orientation system –Example: Three leading factors reinforcing
misunderstandings1)Cultural divergencePossess of different orientation systems that makes the own social understandable, controllable, influenceable and masterable
2) GeneralizationBelief that the own system of orientation is valid for everybody and has to be respected by all people in the same manner
3) Creation of a routineThe own orientation system has become self-evident and does not require any critical control or reflection
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Language
The most important competence in international
business
Ability to understand and make yourself understood
The most obvious characteristic of another culture
Know at least some of the essential politeness words –
it is a courtesy.
An acquaintance with someone else‘s home language
helps to understand them then they are speaking yours.
Language is not only a vehicle for communication but
gives an insight into a people‘s way of thinking,
attitudes and behaviour.
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HumorBritain and Ireland: humor is used to create a
relaxed atmosphere, ligthen tedium and diffuse
tension, disguises aggression
North America: a speech or presentation starts with
a joke
Other cultures: humor has no place at work
Outside the business environment a sense of humor
is well developed in Germany, Japan or Turkey
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Oral, literal, and visual
Northern cultures are more literal, southern Europeans are more oral
People from literal cultures will not take the spoken word seriously unless it is confirmed in writing (letter, fax)
For oral cultures written communication is primarily for the record confirm letters and faxes with a covering phone call.
In America communication is primarily literal but at the same time more visual than in Europe – incorporating graphics, diagrams and highlightened bullet points
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Multi-Cultural TeamsGuidelines
1. Begin as one would with mono-cultural teams until there is a
problem that appears to have a cultural basis.
2. Differences in national culture, while important, are usually
secondary
3. The mistake made by many managers is not that they leap to
cultural solutions from personal differences, but that they do not
know enough about cultural differences to determine
whether or not they are a factor.20
Dealing with Intercultural Management
Respect and CourtesyToleranceIdentify ProblemsCultural taboosKnow the LawEncourage InteractionSimplify LanguageWritten InstructionsBe Flexible
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By integrating the two aspects i.e. inter-culture & human resource, one can develop a dynamic capability approach to staff global assignments. Within this integrative theoretical perspective, cross-dimensional managers (i.e., host or third country managers who are transferred into the home country organization on a semi-permanent to permanent basis) can be explored as a potential pool of uniquely qualified global managers to be utilized in global organizations.
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ConclusionsThe need for highly qualified multicultural managers
will increase as more organizations globalize their operations. These global managers may be perceived as organizational resources and, therefore, a resource-based view of human resource management is utilized.
It is envisioned that through proper understanding of inter-cultural norms employees can train themselves to suit the global environment. Instead of viewing culture as a drawback, it can be used as an advantage while dealing with colleagues and handling business situations effectively.
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